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Applicant Information

Ethnicity

The Regulation C requires the collection of data on ethnicity as a separate data field from race. This conforms data collection under the regulation with standards established by the U.S. Office of Management and Budget (OMB) in 1997 and used in the 2000 Census. Conforming the data collected under Regulation C to census data provides assistance in identifying possible discriminatory lending practices.

OMB DEFINITION

The OMB defines Hispanic or Latino as a person of Cuban, Mexican, Puerto Rican, South or Central American, or of other Spanish culture or origin, regardless of race. The term “Spanish origin” can be used in addition to “Hispanic or Latino.”

REPORTING ETHNICITY INFORMATION

Loan applicants must be provided the standard disclosure about the reasons for collection of data on ethnicity. The disclosure indicates that requesting information about ethnicity, race, and sex is mandated by the federal government to assist in the enforcement of fair-lending laws. Providing the information is voluntary; if the applicant does not provide the information and the application is taken in person, the lender is required to note the data on the basis of visual observation or surname to the extent possible. In addition, applicants must be advised that lenders are prohibited from discriminating on the basis of the information provided, or on the basis of the applicant choosing to provide or not provide the information. This information must be stated orally by the lender if the application is taken by telephone or in person and in written form if the application is by mail or over the Internet.

Lenders may list questions regarding the ethnicity, race, and sex of the applicant on the loan application form or on a separate form that refers to the application. Appendix B of Regulation C provides a sample form that may be used for data collection.

REPORTING ETHNICITY ON THE HMDA LAR

See the “ethnicity" field on the HMDA LAR and the codes for completing this field.

For reporting purposes, enter one of the following five codes for this field:

Code 1 – “Hispanic or Latino”
Use this code for applications where the borrower indicates this is his or her ethnicity. Also, use this code if the information is not provided when the application is taken in person and you note on the basis of visual observation or surname that the applicant is Hispanic or Latino.

Code 2 – “Not Hispanic or Latino”
Use this code for applications where the borrower indicates his or her ethnicity does not fall into this category. Also, use this code if the information is not provided when the application is taken in person and you note on the basis of visual observation or surname that the applicant is not Hispanic or Latino.

Code 3 – “Information not provided by applicant in mail, Internet or telephone application”
Use this code if the applicant does not provide his/her ethnicity in an application taken by mail or telephone or over the Internet.

Code 4 – “Not applicable”
Use this code only when the applicant or co-applicant is not a natural person or when applicant or co-applicant information is unavailable because the loan has been purchased by your institution.

Code 5 – “No co-applicant”
Use this code if there are no co-applicants or co-borrowers in the co-applicant column.

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